Due to the spread of SARS-CoV-2 virus and the number of people being sick with COVID-19, and consequently, following the introduction of a state of epidemic threat within the Republic of Poland on 20/03/2020, the Management Board of Develia S.A. (“the Issuer” or “the Company”) – being guided by the recommendation of the European Sales and Marketing Association (ESMA) of 12 March 2020 – inform that the expected consequences of the pandemic may have a significant and possibly adverse impact on both the Company’s and its Group’s current operations, including on future performance and the accomplishment of the Management Board’s objectives published in the Current Report No. 5/2020 of 22/01/2020, i.e. specifically on:
- Revenue to be generated by shopping centres, which stems from the fact that Develia’s subsidiaries are the owners of two retail and services centres in Wrocław: "Arkady Wrocławskie” and “Sky Tower”, having considered administrative restrictions on the functioning of shopping centres;
- The level and growth of the sale of flats, in particular in the event of a decline in demand for flats and if it happens that banks adopt more stringent criteria for granting mortgage loans or where other disturbances to the housing or banking market occur;
- Develia subsidiaries’ and related parties’ ability to meet time schedules for the construction projects in which they are involved, which may be caused, among other things, by possible delays in obtaining requisite administrative decisions (including building permits) and delays in building works arising from the shortage of personnel;
- The availability of and conditions for new financing, if banks and other financial institutions seriously suffer from a prolonged slowdown in the economy.
The Company monitors and analyses the situation relating to the spread of SARS-CoV-2 virus on an ongoing basis and takes a variety of actions designed to ameliorate the adverse effects of pandemic on Develia subsidiaries’ operations, in particular on the implementation of development projects according to respective schedules.
The Company’s Management Board also have taken specific actions aimed at minimising, as far as practicable, the negative effects of the foregoing factors.
The above assessment has been made to the best of the Company Management Board’s knowledge as at the date of this report. The final impact of the pandemic effects and an extent of such an impact is currently unknown and it is impossible to evaluate it. The impact is conditional on a variety of factors which are beyond the Company’s influence or control.
The Company will communicate in further reports, to the extent required by law, new developments that have a considerable impact on the Company’s operations and performance.
This information, according to the Issuer’s Management Board, constitutes inside information within the meaning of Article 17(1) of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse.